Intel gains slight share over AMD in 2007

Shipments of microprocessors used to power PCs and servers hit record levels for the second time in two quarters, up over 12% in number from processor shipments in 2006. The two major players in this market – by far – are AMD and Intel. In 2007, AMD captured just over 22.26% of the market, down from 23.06% in 2006. In the same period, Intel posted a gain in market share up from 75.12% in 2006 to 77.46% in 2007. Intel’s gain was directly related to AMD’s loss with the addition of grabbing share from Via and to a lesser extent IBM and Freescale. While losing market share, AMD also lost share where it counts – in the server segment where chips sell for more even if they don’t cost more to build. AMD gave away about 1.6% in the server space, losing only slightly in the desktop segment. Read more on IDC’s site and check out the Digitimes article that sums up the numbers.

Even so, the increase in overall processor shipments means that AMD didn’t really lose all that much in terms of revenue, and they shipped about the same amount in both years. According to AMD, they saw “…record microprocessor shipments…” which they seem to think means an increase in market share. That said, the change in market share is small enough that it could be a statistical anomaly. AMD is far from doomed and they will surely remain a thorn in Intel’s side for another long 2008.

Speak Your Mind

capitalist

AMD isn’t doomed, but Via is. Nvidia needs to buy them while they have the chance.

DivingDancer

I would have to differ with you on the chance that the market share change is a statistical anomaly. The total sample size is large enough that this undoubtedly for real. That’s especially true when you factor in the delays in AMD’s next gen rollout, the shipment holds that resulted from significant bugs in the early processor shipments, and the market’s uncertainty over AMD’s future. Believe me, the market share change is for real.

The next natural question is how much it matters? I’d argue that it matters quite a bit, and will continue to until AMD gets their feet under them with their process shrink. In order to hold onto most of their market share, and minimize their market share losses to Intel (especially in the desktop segment) they are selling their processors for a song. They may be shipping a record number of processors, but they are making a record-setting low margin on each sale. That’s a formula that can’t work in the long run.

Their best hope is to get to a stable 45 nm process quickly, so that their fab capacity increases, and their unit cost decreases drastically. Unless that happens quickly, AMD is fighting with a delaying tactic with a certain outcome. And it’s not a good one.

ee92

Intel just released it’s 65nm parts in Oct/Nov-ish.

Given that the servers boys are not the early adopters that us geek types are I’d say it’s a safe bet that these statics have not yet begun to show the real damage that AMD has inflicted on themselves by being late to market, broken, expensive, and SLOW. I believe that bleeding has just begun, not finished.

AMD has seemed to stem some of the $$$ hemorrhaging. That we keep them in the game a while longer. But long term they have an even bigger problem in 2008/2009 then they had in 2007.

Intel CPU’s are getting much faster, using less power, and above all GETTING CHEAPER at a much faster rate then AMD’s are.

AMD’s manufacturing is continuing to fall farther behind, to the point that they are going to outsource a fair percentage (maybe even 100%) of their yet to appear 45nm generation parts. Not sure that is going to make AMD’s profit margins get any better.

This manufacturing gap has always been AMD’s Achilles heal. AMD’s manufacturing and massive debt are why their profit margins are so negative. Not their design and certainly not there marketing. Those AMD do fine at.

Reaper

As long as AMD is in a pickle, everyone I know is buying up AMD chips. I will be putting in an X2 5000+ Black Edition in my newest computer and putting a Phenom in the next one.

DivingDancer

Reaper, that just proves my point. It’s called bargain hunting. And while it is great for the buyer in the short term, it does nothing for AMD other than boosting their unit shipments. But 20% of nothing is still nothing. They won’t save the ship that way.